Real estate market in a decline: prices are shrinking in Vienna and Salzburg!

Real estate market in a decline: prices are shrinking in Vienna and Salzburg!

In 2024, the real estate market in Salzburg and Vienna faces enormous challenges. According to the current report by ORF Salzburg, the number of credit financing has dropped dramatically by up to 80 percent. As a result, both purchase and sale of real estate have decreased significantly - the number of housing projects completed in Salzburg is estimated from currently only 400 to only 400 in 2025. Roman Oberndorfer from the industry points out that the strict financing measures of the banks and the exorbitant construction costs are the main causes for these declines. The applicable credit institutions real estate financing measures (KIM) Ordinance expires in July 2025 and could possibly bring a turning point, which could only be felt with a delay of several years.

prices drop in transdanubia

in transdanubia, especially in the districts of Floridsdorf and Donaustadt, the property prices have a remarkable decline. As Kubicek real estate reported, existing apartments have fallen by an average of 4 to 5.4 percent, while prices for existing houses are even reduced by up to 12 percent. This applies above all to remote locations, where the property prices were reduced by 11.5 percent. Despite these declines, first -time objects show an astonishing stability in the prices, which indicates that the market in the most sought -after locations remains robust.

The falling property prices in Vienna are in a strong contrast to the challenges in Salzburg. While construction activity in Salzburg is going dramatically and has already affected numerous industry managers, the market in the Vienna districts shows a certain resilience, especially in the best where demand remains unbroken. The developments of both regions illustrate how different the situations in the individual markets are and what profound effects have the current economic conditions on the real estate industry.